LANSING, Mich. — Sen. Roger Hauck on Tuesday urged Attorney General Dana Nessel and Auditor General Doug Ringler to launch formal investigations into unpaid medical bills related to Michigan’s prison health care system, focusing on contractors Wellpath and Grand Prairie Healthcare Services.
“The state contracted with Wellpath and Grand Prairie to provide health care for inmates, but local providers are being left with unpaid bills,” said Hauck R-Mt. Pleasant. “The attorney general must investigate these companies and hold them accountable.”
Hauck also urged the auditor general to review the Michigan Department of Corrections (MDOC) and the Department of Technology, Management, and Budget (DTMB) for their handling of the $590 million, five-year contract with Wellpath and Grand Prairie, citing concerns over the contract’s award and fulfillment.
“In February, Wellpath and Grand Prairie requested a termination of their contract, and the state agreed to let them walk away, despite their failure to address the issue of unpaid bills to health care providers,” Hauck said. “Rather than ensuring these outstanding payments were resolved, the state transitioned the contract to VitalCore Health Strategies, leaving many providers in a precarious position with no clear path to recovering what they’re owed.”
In 2021, the state chose Wellpath and Grand Prairie as the lowest bidder in an effort to save money and provide the overall best value, but even then, concerns were raised about the financial viability of their bid.
“While selecting the cheapest option may have seemed like a good decision at the time, it’s now clear both companies under-projected costs. As a result, local health care providers have been left unpaid, which jeopardizes the critical services these providers offer,” Hauck said.
Ambulance services across Michigan are currently owed approximately $6 million, according to reports. This underpayment has threatened the financial viability of emergency medical providers, especially in rural areas. It remains unclear how many other health care providers across the state may be facing unpaid bills, leaving the full scope of the problem uncertain.
As a result, Hauck is calling for:
- An attorney general investigation into Wellpath and Grand Prairie Healthcare Services.
- An auditor general investigation into the MDOC and DTMB’s contract award process and oversight.
- Immediate audits and payment of all outstanding bills owed to health care providers.
“This situation is jeopardizing the ability of some providers to stay in business,” Hauck said. “We need swift action to ensure these bills are paid and to prevent this from happening again.”
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